MW: Gold sinks more than 1% as safety allure fades in wake of U.S. election developments
Gold futures slid more than 1% on Monday, as haven assets took a hit after the Federal Bureau of Investigation said it won’t bring fresh charges against Hillary Clinton over a batch of newly discovered emails.
Gold for December delivery GCZ6, -1.30% slid $18.40, or 1.4%, to $1,286 an ounce. Up 2.2% last week, the metal logged a fourth-straight weekly gain, fueled partly by indications Republican presidential nominee Donald Trump was gaining on Democratic rival Clinton at the polls ahead of Tuesday’s election.
FBI Director James Comey said Sunday he had informed Congress there were no new findings in the additional emails found on the computer of former Rep. Anthony Weiner, whose estranged wife is Clinton aide Huma Abedin. The news triggered buying relief across perceived riskier assets such as global stocks, triggering gains of more than 1.3% for Dow industrials and S&P 500 futures.A victory for Clinton is generally viewed as more favorable for stock markets as it may represent fewer unknowns and more stability for investors. Gold has been gaining on the view that a Trump victory could trigger volatility and put a U.S. interest-rate hike on hold. Rising real interest rates lower the opportunity costs of holding gold as the metal provides no yield.
Last week, the U.S. Federal Reserve signalled that its policy makers don’t need much evidence before moving on another interest-rate hike, which many believe will come in December.
The dollar rose in step with stock futures, largely against the Japanese yen USDJPY, +1.30% , which is viewed as another haven asset for investors in times of economic and political uncertainty. The ICE Dollar Index DXY, +0.26% , which measures the greenback against a half-dozen rivals, rose to 97.59, from 97.03 on Friday. The dollar typically moves inversely to gold.
December silver SIZ6, -0.88% fell 14 cents, or 0.7%, to $1,288 an ounce, after gaining 3.2% last week.
Among other metals, December copper HGZ6, +1.32% rose 3 cents, or 1.4%, to $2.297 a pound, after gaining around 3.3% last week. January platinum PLF7, -1.18% slid $9.90, or 1%, to $994.40 an ounce, after a 2.4% gain last week, while December palladium PAZ6, +0.14% rose $4.55, or 0.7%, to $629.30 an ounce. Palladium gained 1.4% last week.
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GCZ6
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SIZ6
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